Question-1: (marks-6) Weld Corporation is constructing a plant for its own use. Weld capitalizes interest on an annual basis. The following expenditures are made during the current year: January 1, $50,000; July 1, $290,000; September 1, $800,000; and December 31, $2,110,000. The following debts were outstanding throughout the current year. Debt Amount Construction note, 12% $100,000 Short-term note payable, 15% 500,000 Accounts payable (noninterest-bearing) 400,000 Weld capitalize interest first using the interest rate on debt directly associated with the construction and then using the weighted average interest rate on all other debts. Answer the following questions, rounding your answers to the nearest whole dollar. i. Compute the amount of interest to be capitalized in 2020. ii. Calculate the amount of interest to expense in 2020. iii. Prepare the 2020 summary journal entry to record the construction expenditures and interest, assuming that construction has completed on December 21, 2020. Question-2: (marks-4) Presented below are two independent transactions. Both transactions have commercial substance. A. Sidney Co. exchanged old trucks (cost $65,000 less $22,000 accumulated depreciation) plus cash of $16,000 for new trucks. The old trucks had a fair market value of $36,000. B. Lupa Inc. trades its used machine (cost $25,000 less $8,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair market value of $19,000), Lupa also received cash of $2,000. Instructions i. Prepare the entry to record the exchange of assets by Sidney Co. ii. Prepare the entry to record the exchange of assets by Lupa Inc